Bitcoin price faces rejection and is at risk of dropping below $22K
After finding support at $22,000, the price of Bitcoin tried to correct upward. It managed to surpass the $22,250 and $22,400 levels, but encountered resistance near $22,600 as the bears stepped in. This led to a sharp decline below $22,200 and $22,000 levels, with the price bottoming out at around $21,904. Currently, the price is consolidating its losses and has made a minor recovery above the $22,000 level.
The current trading price of Bitcoin is below both $22,250 and the 100 hourly simple moving average. It is currently testing the 50% Fibonacci retracement level of the recent decline from the swing high of $22,600 to the low of $21,904.
The immediate resistance level is around $22,250, which is also where a key bearish trend line is forming on the BTC/USD hourly chart. The next major resistance zone is around $22,420, close to the 76.4% Fibonacci retracement level of the recent decline from the swing high of $22,600 to the low of $21,904.
Currently, the primary hurdle for Bitcoin lies at the $22,750 zone. If BTC manages to close above this resistance level, it could trigger a substantial increase towards the $23,200 resistance zone. The next crucial resistance level would be near the $23,850 zone, and a breakthrough above this level may lead to a significant rally in the price of Bitcoin.
If Bitcoin price fails to clear the resistance levels at $22,250 and $22,420, it may experience another downward trend. In such a scenario, the immediate support level for Bitcoin would be around the $22,000 zone.
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